Your complete guide to buying your first home — from saving your deposit to getting the keys.
A first time buyer mortgage is simply a mortgage for someone who has never owned a residential property before. While the product itself works the same way as any other mortgage — you borrow money, secure it against the property, and repay it with interest over a term — being a first time buyer opens up certain schemes, better LTV products, and stamp duty relief that aren't available to existing homeowners.
In the UK in 2026, first time buyer activity is at record levels. Lenders are competing aggressively for this market, with some offering income multiples of up to 6x salary and deposit options as low as 5%.
The minimum deposit for most first time buyer mortgages is 5% of the property value. On a £300,000 property, that's £15,000. However, the larger your deposit, the better the interest rate you'll be offered — and the lower your monthly repayments.
💡 Good news for 2026: Lenders have expanded 90% and 95% LTV products significantly. There are now over 980 deals available at 90% LTV — the highest number on record.
Most lenders will offer between 4 and 4.5 times your annual income. Some specialist lenders and schemes now offer up to 5.5x or even 6x for first time buyers with strong affordability profiles. Your credit score, outgoings, and employment type all factor in.
A whole-of-market mortgage adviser can assess your full situation and identify lenders offering the best income multiples for your circumstances — something a high street bank comparison simply can't do.
Your interest rate is locked in for a set period — typically 2, 3, or 5 years. Your monthly repayments stay the same throughout. Good for budgeting. The most popular choice for first time buyers.
Your rate tracks the Bank of England base rate, plus a set margin. Repayments go up or down with base rate changes. Riskier but can be cheaper when rates fall.
A discount off the lender's standard variable rate (SVR). Similar risks to a tracker — your payments can change.
Several UK government schemes can help first time buyers get onto the ladder:
⚠️ Stamp duty relief for first time buyers changed in April 2025. You now pay no stamp duty on properties up to £300,000 (reduced from £425,000). Budget carefully if buying above this threshold.
Beyond your deposit, budget for:
You're not legally required to use one, but it's strongly advisable — especially as a first time buyer. A whole-of-market adviser has access to thousands of mortgage deals, can identify specialist lenders suited to your situation, handle the application, and liaise with solicitors and the lender on your behalf.
Crucially, a good mortgage adviser costs nothing extra. They're paid commission by the lender on completion. There's no reason not to use one.
💡 Nesto matches you with a whole-of-market FCA-regulated mortgage adviser in under 2 minutes. Free, no obligation — just fill in a short form.
From application to completion typically takes 4–12 weeks, depending on the lender, solicitor, and chain complexity. Get a Decision in Principle (DIP) first — this is a lender's indication of how much they'd lend you, and estate agents will often ask for it before accepting an offer.
Get matched with a whole-of-market FCA-regulated specialist in under 2 minutes — free, no obligation.
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